Fourteen life insurance companies that maintained FD of Rs 521 .36 billion in FY 2080/81 raised the amount by 13.84 percent to Rs 593.51 billion in FY 2081/82.
Life insurance companies invest huge chunk of their funds as FD in BFIs. Although the institutional interest rates have fallen below 3 percent, the FD maintained by life insurance companies grew as per the requirement of Investment Guideline of maintaining FD.
Out of fourteen life insurance companies, Nepal Life Insurance has the highest FD of Rs 170.41 billion in FY 2081/82. The FD amount increased by 12.58 percent compared to Rs 151.37 billion of the corresponding period of FY 2080/81. In the review period, Rastriya Beema Company raised its FB with highest percentage of 25.75 percent while Himalayan Life Insurance logged the least growth of 5.18 percent.
The companies maintain majority of their FD with commercial banks, followed by development banks, finance companies and infrastructure banks. Out of total amount, the companies maintained 90 percent of their FD with commercial banks, 8 percent with development banks and the remaining with infrastructure bank and finance companies.
